April 8, 2020
Action items for qualified retirement plan sponsors
Client Alert
Under the CARES Act enacted on March 27, 2020, retirement plan sponsors may allow participants who are “qualified individuals” to access retirement accounts now if they amend their plans to allow coronavirus-related withdrawals.
“Qualified individuals” are participants (or their spouses or dependents) who either (1) are diagnosed with coronavirus, or (2) experience adverse financial consequences as a result of being quarantined, furloughed, laid off, reduced work hours, inability to work due to lack of childcare or business closures related to the pandemic.
Retirement plan benefits include:
- Delayed loan repayments
- Increased loan amounts
- Emergency withdrawals
- Waiver of required minimum distribution (RMD) rules
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